aef1.1g/bgm/2.20.7

HM Treasury

A D Smith Esq

Foreign and Commonwealth Office Overseas Estate Department

Apollo. House

36 Wellesley Road

Croydon

see

52 59

Parliament Street London SW1P 3AG Telephone 071-270)

cc M white Mr Berban

SURREY

CR9 3RR

Dear

Aler,

22 July 1993

51

52

4895

23/7/47

HONG KONG: NEW CONSULATE GENERAI.

Thank you for your letters of 7 and 22 June. It would be premature to give final approval now to the whole project (£27.55 million) while the requirements and specification remain under review. You say that you expect them to be resolved when considering the final sketch plans and report. The important point is that your user requirements should be frozen at this stage so that the risks of later changes are absolutely minimised. I am sure you will agree that the right value for money choices need to be made now so that the detailed design and construction stages can proceed within a manageable framework.

2. AS

the

I have been

been discussing by telephone with you and Alan Wootton in RFD, we are, however, content to give you now Treasury approval you require for work that is imminent: submission to the Hong Kong authorities for Building Ordinance approval, site clearance and enabling works, including demolition of Colvin House, and the foundation works. You told me on that the estimated costs, excluding the main works contract totals Monday

some £3 million, as follows:

Demolition (costs) Demolition (fees) Foundations. (costs)

1

HKD 406/2

RECEIVEL

02 AUG 1993

DESK OFFICES

Foundations (fees)

Tree Surgery

Total

770,000 $ HK 65,000 $ HK 21,625,000 $ HK 1,800,000 $ HK 450,000 $ HK

24,710,000 $ HK

at 11.75 $ HK + 1 = 2,102,979

INDE

£820,000

2,922,979

Design work

Overall Total

We therefore now approve

£3 million as the upper limit for the stages up to; but excluding, the main works contract.

in

This approval is on the basis that Alan Wootton confirmed his letter of 5 July that the Hong Kong Consulate General project was at the top of FCO's priority list and thus would not be affected by decisions to be taken in the 1993 public expenditure survey.

Our approval is also ON the basis that you have

3.

59

63.

Switchboard 071-270 5000

Fax 071-270 5653

Telex 9413704

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